Jason Njoku, CEO of IrokoTV, has shed light on the significant challenges the movie streaming platform faced in Nigeria, ultimately leading to its exit from the local market.
In a Facebook post shared by media personality Chukwudi Iwuchukwu, Njoku described the company’s $100 million investment in Nigeria as a “costly misstep.” Despite years of effort, the platform failed to gain solid footing.
Founded in 2011 and officially launched in 2015, IrokoTV, according to Njoku, spent its first ten years operating in “full survival mode.”
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He explained that the company struggled to compete with major international streaming services such as Netflix, Amazon, Showmax, and Iflix.
“Between the revenues we generated and the venture capital we raised ($35 million) over the first ten years, we easily spent $100 million trying to win,” Njoku revealed.
“But we weren’t winning; we weren’t losing either. We were just there, in full survival mode, operating in the toughest conditions possible,” he said.
He added that the Nigerian market eventually collapsed, yet IrokoTV continued investing heavily despite warning signs.
“The local market in Nigeria simply collapsed. We saw it and stubbornly decided to keep investing and doubling down until we were all tapped out, having burnt through most of the post-exit capital,” he wrote.
“In 2023, we finally accepted there was no market for paid premium services and exited Nigeria.”
“We haven’t processed any Naira payments there in almost two years,” he added.
Njoku stated that the streaming model was ultimately unsuitable for Nollywood in Nigeria’s economic landscape. He identified ROK Studios—the company’s production and distribution arm—as the most successful part of the business.
“It’s okay that we tried and failed. It’s okay that we accept the limitations in the domestic market we find ourselves in. Did it need $1B+ to figure this out? Absolutely not,” he wrote.
“I believe, with my newfound knowledge, that iROKOtv could have reached the same conclusions with $5-10 million versus the $100 million+ we ended up investing.
“In hindsight, streaming wasn’t the winning model for Nollywood in Nigeria. Content, channels, and distribution were.
“With the economics that business had in 2018, we could have shut down iROKOtv and its $5 million/year in losses and either listed it or just had a fantastically profitable business.”
Concluding his reflection, Njoku warned startup founders against the dangers of raising too much capital too soon.
“My lessons were expensive, and that’s why I am so consistent in telling founders not to over-raise,” he said.
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